International trading didn’t begin yesterday. It has its roots set in the medieval ages. Early trade got prominence when the European merchants started venturing to new lands via sea route. They searched for spices and tradable goods such as silks, teas and other valuable products. Not only did they find the same, they also discovered new lands and set about business protocols that are used to this day and age. Most prominent of the same is the Bill of Lading (BoL). With it, the ownership and responsibility of the goods rested with the merchant or captain of the ship. As he was carrying the goods from far away lands back to Europe, he was held legally accountable for any damage or loss of goods or property. He was responsible for the goods even in the extreme case of piracy or hurricanes!
Over time business models changed, but the bill of lading persisted. Any good that was being transported from A to Z location is the responsibility of the fleet owner and subsequently the driver. With new age technology, these trade contracts are now in a digital format. Blockchain technology in particular, exceeds expectations in developing a smart contract.
Blockchain Technology: Decentralizing Contracts
Blockchain is a decentralized ledger. With it, one can hold data, contracts, and even cryptocurrency secure. This technology operates on a few main protocols amongst many others. They are:
1. Proof of Stake
A consensus protocol in which all the different modulators work on implementing their stake on to the block.
2. Proof of Work
Used majorly in crypto currency mining. Miners complete transaction and get rewarded based on the work they have done.
3. Proof of Contract
A legally binding contract between the 2 or more major parties. Commonly known as Smart Contracts.
Smart contracts range from loan agreements to shareholders agreements. They are apt in creating and implementing different regulations regarding shares and stakes. Additionally, it can also help implement ethical Labor contracts and Civil-law agreements. Any type of amendments, or termination can only be undertaken based on satisfaction of all the parties involved. Property contracts including purchase, sale, lease, transfer into partial ownership, insurance contracts (insurance of cryptocurrency accounts, transactions, hedging of risks), and Agency agreements are some of the few applications of smart contracts.
One of the biggest costs to company are third parties. These liaisons with outsiders to hire any service are a money pit and Blockchain technology is the key solution to eliminate the same. They can be made between 2 parties and are legally binding.
Ethereum or Quantstamp are two of the top range decentralized platforms on which smart contracts can be made. Smart contracts of commercial concession and trust management agreement including Escrow are covered.
IoT : Real - Time Connectivity
In case of a mishap, the quantification of the damage will be in epic proportions. Hence, IoT technology has come to the rescue of organizations. Thanks to geo fencing, the supervisors get real time updates and notifications related to the movement on their customized apps. This end to end IoT connectivity not only updates on the location, the many sensors keep one abreast on the goods inside the trailer. Many deliverables need to meet a temperature compliance. This can be detected with the help of IoT enabled sensors which are often implemented by organizations. In this economy, it is prudent for one to invest in failsafe technology and implement smart contracts to protect themselves from losses.
What’s more interesting is that these smart contracts are getting smarter with state-of-the-art technologies like artificial intelligence. Our sister company, Biz4Group, an AI development company, has been working in this area to make anomaly detection fail-proof. There are a lot of AI and IoT use cases they’re working on and you should check them out.
Intellia IoT : To the Rescue!
Intellia IoT has used the best of Blockchain technology and IoT. This marriage is further strengthened with customized smart contracts. They ensure fair execution of smart trade contracts such as electronic BoL. Advance analytics will depict the data into valuable information and help you to analyze the trends. Additionally, for further business benefits, it is prudent that one had access to detailed compliance of the many clause that are mentioned in a smart contract. This is achievable with Intellia IoT as it offers analytical overview, remote control of the devices with customized application and instant alerts.
An Example:
When 2 parties that deal in Apples, decide to trade with each other, they draft a Smart Contract. In it, the Apple seller has a few factors to adhere to before a contract is considered complete. The Apple buyer has the rights to ensure the following:
1. Time of delivery
2. Temperature and humidity level maintenance most suited for Apples
3. Weight monitoring to ensure complete consignment is delivered.
4. Contract Breach Alerts and
5. Departure & Arrival Alerts
To ensure that all the above-mentioned criteria is met, sensors or Smart Agents are placed inside trailers. They monitor the goods flow and ensure contract compliance. Whenever the Humidity/Temperature inside the trailer deviates from the approved limit, mentioned in the smart contract, all the concerned parties are notified of the contract breach immediately. The seller then has the option of requesting the buyer to limit the losses to the least. As the goods need to be appraised, the seller communicates to the buyer and comes up with mutual modification to the contract. With such real-time transparency, the buyer is ensured of his goods quality at the time of delivery. This visibility with the help of customized applications, helps both parties ensure 100% transparency in the deal.
In Conclusion:
Blockchain technology and IoT go hand in hand. They are the missing link which are helping revolutionize trading. When introduced and implemented, they help our approach in ensuring security and privacy gains. Technology has changed how we see things. What used to be a security against pirates and krakens is now a means of ensuring the very best in deliverables. After all, Blockchain technology and IoT are 2 spokes in a wheel which shall ensure forward momentum.
Moreover, with AI, this is going beyond ordinary prediction and monitoring. If you’re considering implementing smart contracts in your organization, you must get in touch with Biz4Group. It is another company in our corporation that focuses on AI and IoT product development consulting. We’ve built numerous technology solutions that leverage AI and IoT technologies in tandem.
